The Hindu Business Line : Reserve Bank slaps Rs 5 lakh fine on ING Vysya Bank

THE Reserve Bank of India on Friday imposed Rs 5 lakh penalty on ING Vysya Bank Ltd, for not deducting the full amount of unamortised Voluntary Retirement Scheme expenditure and violating RBI regulations, said a press release from RBI.

This resulted in overstating Tier I Capital and Capital to Risk Adjusted Ratio (CRAR) in disclosures in the bank's balance sheet for March 31, 2004.

The release also said the bank had not provided for outstanding debit entries in inter-branch accounts pending for more than six months, as required by RBI, which impacted the profits for the financial year 2003-04.

The bank had also flouted RBI guidelines by financing promoters, offering interest at lower rates to borrowers who availed themselves of insurance products floated by its group company, depriving its customers of choice in availing of insurance from any company and wrongly classifying advances under priority sector credit, the release said.

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